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THE government has reduced retail fuel prices for the coming week following a modest easing in global oil markets, while warning that broader geopolitical instability and supply chain risks continue to place severe pressure on international energy prices.
The Ministry of Finance (MOF) said the latest adjustments, effective from 14 to 20 May 2026, were implemented under the Automatic Pricing Mechanism (APM) after international fuel prices recorded a decline during the latest pricing cycle.
Under the revised rates, RON97 petrol will decrease by 20 sen to RM4.70 per litre from RM4.90 previously, while unsubsidised RON95 will be reduced by 15 sen to RM3.87 per litre from RM4.02.
Diesel prices in Peninsular Malaysia will experience the largest adjustment, falling by 30 sen to RM4.87 per litre compared with RM5.17 last week.
Despite the reductions, Putrajaya stressed that retail fuel prices remain substantially above levels recorded before the outbreak of conflict in West Asia, reflecting continued instability in global energy markets.
According to the ministry, crude oil prices continue to hover at approximately US$100 per barrel, significantly higher than the US$60 to US$70 range seen before tensions escalated in the region.
Officials said the market remains heavily influenced by escalating logistics and insurance costs linked to heightened security risks surrounding conflict zones and global shipping routes.
The government also warned that fears of potential disruption along the Strait of Hormuz continue to weigh heavily on global oil supply expectations and international fuel pricing.
The waterway remains one of the world’s most strategically critical maritime corridors for crude oil transportation, with any instability in the region carrying immediate consequences for global energy markets.
“Given that global market conditions remain uncertain, the MADANI Government calls upon the public to continue practising prudent fuel consumption in order to help preserve national fuel supplies,” the ministry said.
Amid continuing concerns over rising living costs, the government confirmed that targeted fuel subsidy programmes would remain in place to support households and key economic sectors.
Subsidised RON95 under the BUDI95 programme will continue to be fixed at RM1.99 per litre, while subsidised diesel prices in Sabah, Sarawak and Labuan will remain at RM2.15 per litre.
The Subsidised Petrol Control System (SKPS) rate will stay unchanged at RM2.05 per litre, while the Subsidised Diesel Control System (SKDS) will remain at RM2.15 per litre.
The Ministry of Finance said the MADANI administration remained committed to balancing fiscal discipline with targeted public assistance measures amid volatile global conditions.
“In balancing the people’s cost-of-living pressures and the need for prudent fiscal expenditure, the MADANI Government will continue adopting a measured approach to protect the rakyat from price volatility while ensuring national fuel supplies remain sufficient and guaranteed,” the statement said. - May 13, 2026